All Forum Posts by: Eric Wagner

I fix and flip in this market.  I regularly run into properties in this price point that by the time you are done with all the work it's worth less than what you put into it.  Just because it's cheap doesn't mean it's a good deal. Since you haven't filled out your profile I don't know where you are from but if you are bringing your "California Brain" to this price point it's unlikely to work as you hope. I know because I did it.

Vince,  I have had a single family portfolio in Cleveland for 10 years.  They were all lower end properties similar to what you are contemplating. Some of them are Section 8 (HCPV).  Frankly, if you have a substantial amount of capital to invest I would RUN from this opportunity.  Everything others posted is true.  You will spend so much time and money on maintenance, turnover, rent collection, leasing fees, doing repairs that Section 8 requested (needed or not) that the rosy picture you are being painted won't materialize.  If you were the hands on operator you might able to control this some, but you have to pay this other partner so you can't save any money with "sweat equity."   Buy better properties in better neighborhoods.

I don't know if I'd say you don't have to worry about it but the big changes occur every three years in my experience.  You can get professional help but they may or may not be able to help you.  You can get an appraiser and if the appraisal comes in below the assessed value you can file with the county.  You will get a hearing and they will decide whether or not to lower the taxes. Doesn't mean that they will lower them.

There are so many houses for sale in Cleveland you might just want to keep looking instead of dealing with this issue.

I use Lokal and have been happy with them.

Welcome!! There is a ton of information on this site.

I'm happy with my PM in Cleveland, very happy.  DM me for the contact info.

In my experience in Cleveland they do frequently set the assessed value to the purchase price, at least initially.  Cleveland appraises all properties every three years and resets the assessed value so you have to watch out for this. They just did this in the fall of 2018 so it will be another three years before they do it again. 

Also for the record it's millage not mileage in the above post.

So my two cents... in my opinion the POS was supposed to help the neighborhood and values, however when you require repairs AND money put into escrow, frequently the only people with the cash to do the repairs AND put the same amount in escrow are investors, so we drive the price down. The seller having no other options takes the investors offer if they must sell.  I have had POS amounts of $15,000 in repairs and it had to be escrowed! So effectively I had to have $30k. $15k to pay the contractor now and then wait for my other $15k to be refunded after the city inspected it. I think POS inspections drive down the home values because of this.  The exact opposite of the stated intention. 

I would get the trees trimmed to prevent any possible problems.  Also many insurance policies will inspect a property after you buy it and sometimes on an annual basis.  If you have trees overhanging or touching a roof they can request you to trim them or they will cancel your policy.